Tokyo-based fintech company JPYC has introduced the first yen-backed stablecoin in Japan, along with a platform for its issuance. This launch takes place amid increasing global competition for capturing the expanding market.

The stablecoin, named JPYC, officially launched on Monday and is fully backed by bank deposits and government bonds, boasting a 1:1 exchange rate with the yen. According to a recent statement from the company, seven firms have already expressed interest in utilizing JPYC in their services.

At a press event held in Tokyo, JPYC’s President, Noriyoshi Okabe, remarked that launching this stablecoin is a significant achievement in the evolution of Japanese currency. He also mentioned that numerous companies are keen on adopting it.

JPYC Launch Source: Noriyoshi Okabe

The inception of JPYC aligns with a notable growth in the global stablecoin market, which is predominantly occupied by dollar-pegged cryptocurrencies like USDT and USDC. As of now, the market capitalization has soared to exceed $308 billion. USD-pegged stablecoins have already made their mark in Japan, with Circle successfully introducing USDC earlier this year.

Launch of the Stablecoin Platform

Alongside its stablecoin, JPYC also rolled out JPYC EX, which facilitates the issuance and redemption of the token. This platform adheres to rigorous identity and transaction validation regulations under the law aimed at preventing criminal proceeds.

Users can deposit yen through bank transfers to receive JPYC into their digital wallets and may also withdraw yen back to their registered accounts.

Looking ahead, JPYC’s ambition is to reach a stablecoin issuance balance of 10 trillion yen within the next three years while aiming to establish innovative social infrastructures powered by stablecoins.

Competition in Japan’s Stablecoin Market

JPYC may soon have competition, as Monex Group, a financial service provider in Tokyo, announced plans to introduce a yen-pegged stablecoin as well. Moreover, several major Japanese banks—Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp., and Mizuho Bank—are collaborating to launch a yen-pegged stablecoin through MUFG’s platform, Progmat.

Additionally, Japan’s Financial Services Agency is potentially reviewing regulations that could allow banks to invest in cryptocurrencies like Bitcoin.